Putin signs law that may force Apple to leave Russia


Starting from July 2020, gadgets that are sold in Russia should have an installed Russian software on them. This requirement follows from the law signed recently by Vladimir Putin.

It is officially stated that the law on pre-installation of Russian software obliges companies to provide Russian consumers with Russian software. Information on what kind of software and on what devices it should be installed will appear in the coming months. For now, it is known that the law will affect smartphones, computers and TVs with Smart TV function.

Who and why would need such a law?

“Russian programs are more attractive for Russian consumers, increase the convenience of using the devices on which they are installed, affect the quality of use of such devices, increase the value of goods for the consumer,” says the explanatory note to the law.

But, according to Meduza sources, the bill came to the parliament from the presidential administration for the sake of further increase of “sovereignty of the Internet”.

Russian companies supported the law

The main victim of the law will probably be Apple. The U.S. corporation is very reluctant to use third-party software on its devices. Previously, Apple representatives said that the introduction of such requirements will force the company to either “review its business model in Russia” or leave the Russian market.

“Manufacturers of iOS and other closed operating systems devices may well leave the Russian market, they have already talked about it,” said Anton Guskov, a representative of the Association of Trading Companies and manufacturers of household appliances and computer equipment.

In turn, a number of companies, including Mail.ru Group, Kaspersky Lab, MTS, and MegaFon, as well as a number of others have adopted the new law with optimism.

What are the consequences? Will Apple really leave Russia?

Apple Rus’ revenues in 2018 amounted to 197.2 billion rubles (about $3 billion). This is just over 1% of the company’s revenue worldwide.

“Not all companies have global policies tailored to a specific country. Therefore, at best, there may be delays in the delivery of gadgets, in the case of a more radical one, it may simply be the departure of these companies from the market, because for many companies the Russian market is not a strategic one,” says Ilya Kretov, CEO of eBay in Russia.

Other experts believe that the quality of software will become worse.

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